Mortgage lenders EBS and Haven to increase variable rates by 0.35%

This is the second rate hike by ESB in two months, announcing in March an increase of 0.75% across fixed-rate mortgages

Both interest rate hikes will take effect on the 18th of May. Yui Mok/PA Wire

Lenders EBS and Haven are the latest mortgage providers to announce interest rate hikes in response to continuous increases by the ECB.

Variable rates provided by Haven will increase by 0.35%, with the loan provider writing to customers confirming the new interest rate which comes into effect on the 18th of May. 

For customers in the lower variable loan-to-value band, the hike will see mortgage rates increase from 2.75% to 3.1%, with those on the higher end seeing rates increase from 3.15% to 3.5% come May 18th. Those in the middle band will now pay 3.3% on their mortgage.

Similarly, a 0.35% hike will also be applied to EBS's buy-to-let variable mortgage rate for Irish customers, with the changes also taking effect on May 18th. Once added, EBS's variable rate for buy-to-lets will increase from the current 5.08% to 5.43% next month.

This is EBS's second rate hike in two months, announcing increases in March of up to 0.75% on fixed-rate mortgages.

Haven fixed mortgage rates remain unchanged, with EBS fixed and private dwelling variable rates also remaining the same.

The announcement comes as ECB policymakers debate further interest rate hikes to offset rising inflation. Since July 2022, the ECB has risen interest rates six times, with its main rate increasing from 0.5% to 3.5%. 

As uncertainty remains high, recent reports suggest policymakers are now converging on an additional rise of 0.25% ahead of their May meeting, which, if implemented, would increase the bank's main refinancing rate to 3.75%, continuing on its record fast pace.